linda has a comment on the end of the payroll. this is not an increase in taxes. people and employers have had a 2% break-in social security taxes for the last two years. this at a time when social security fund could not afford it. a financial gift to the already employed at the expense of social security. technically right, but in your bed you hated it. i love hearing from you. send me an e-mail. firstname.lastname@example.org. and you know what, two years in the making almost. the man behind the disasters solyndra alone is stepping down. energy secretary steven chu offering his resignation today. he was highly criticized for its handling of the $528 million loan to the solar panel maker, which later went bankrupt. despite the blunder he is leaving with obama's support and his pride intact. he said, came with streams and leaving with a set of accomplishments that we should all be proud of. not all of his dreams came true.
back in 2008 he famously said we as a nation needed to boost gas prices to levels -- levels seen in europe. although he eventually walked back those comments, i say his departure could not come soon enough. $8 a gallon. that's my "2 cents more." that's it for tonight on "the willis report." thank you for joining as. do not forget to record airshow if you cannot catch us live. have a great weekend and a great night. ♪ liz: a not so happy birthday. the income tax is 100 years old or it look at how much it has grown out. welcome, everyone, i and liz macdonald in for neil cavuto. as you're watching the super bowl, we are continuing to watch our tax rates skyrocket. income tax celebrating its 100 are they this saturday.
it was 7% of first started. now, locale hiatus. it's about if we should raise the rates even more. dan mitchell on what rates america will be seen next 100 years. you know, here is the thing. basically we are seeing the income tax celebrating its 100 anniversary. back then, it was unconstitutional to have an income tax. what do you make of the direction the country is in with where they are right now? >> well, this is just an argument for euthanasia. i think 100 years is plenty long enough to have the income tax. what is really tragic is that we would not have the modern welfare state with all the economic damage it impooses if e had not given politician the ability to live levy a broad-based tax like the income tax. but as you point out, it is just going to get worse in the future because we have these out-of-control entitlement programs. we have politicians who can't
resist using the income tax both as a vehicle to constantly raise tax rates and grab one of our money and then as a vehicle for all of these corrupt loopholes, deductions, exclusions, exemptions and shelters. it's a nightmare for ordinary hard-working people. liz: why are republicans losing the fight on a single? i hear what you are saying. that the tax code is essentially a 21st century court arrow. excuse me, pork barrel. but why is it at the federal level american a thing that we don't agree with you, republicans. we want higher tax rates. what do you make of that? >> the american people think that taxes are going up, of course they would don't want taxes go up on them. it is sort of like if you are a wildebeest. you are in the herd and they say
tax the rich, don't tax me. if the republicans had credibility, they would maintain their no tax promise that they would also give us tax reform. a lot of gop people on capitol hill are more than happy to play the porkbarrel game. a lot of republicans support the corrupt ethanol preferences. on the housing benefits in the tax code. these are things that republicans are just as guilty in many cases as democrats. liz: you are saying once they get inside the beltway, they lose their resolve. in other words, we are seeing these laboratory experiments with tax reform. but we aren't seeing that at the federal level. when they get inside the l.a., what happens? what happens to the good guys who want to keep rates low? >> the joke is that people decide it is kind of amazing.
in places as varied as louisiana and kansas you have lawmakers talking about getting rid of state income taxes. yet in washington, remember when you had debated and excitement, should we get rid of the income tax, should we do with a national sales tax. now nobody is talking about that anymore. they have really absorbed into the board, to give it a star trek reference. liz: so good to be with you, thank you very kindly for your time. next up, george w. bush was the last president to cut federal tax rates. but the appetite seems to be lost. we have andy card as the last president, he says, to cut tax rates. >> i hope not, because george w. bush inherited a recession when he became president.
he had the courage and foresight to say that i want to cut everybody's taxes. everybody's taxes, and he negotiated with a democratic controlled senate and to be able to get those tax cuts and reality is a good thing because he made that recession was very shallow end of the month long. then we had the attack of 9/11 and president bush had put more tax cuts in place to make sure the software economy of 9/11 did not jeopardize her ability to create jobs and opportunities for americans at home. tax rates coming down. people should understand the entrepreneurial spirit of america needs to have a predictable tax policy and weight that do not burden the road. right now we have tax rate discussions that our economy and that's not good.
liz: it's hard to understand. the average hard-working american doesn't always understand what is happening. basically president george w. bush got vilified for raising the. despite the fact that on his watch the berlin wall fell, the soviet union collapsed or it at the same time, this president that we have a thing that sayig that i will not raise taxes on the middle class family. i won't even raise capital gains taxes. how are we, in this day and age, when president barack obama does not get criticized? >> people should look at what the first president bush did when he did have new taxes. it cost him reelection, but he did the right thing. he got something. he he got disciplined into the federal government. he drove discipli not just on
congress. he drove a deep inside of congress. that discipline allowed the economic country to exist that happened during the clinton's tenure to be a reality. but the first president bush did the courageous and right thing, and he drove fiscal discipline into a body that doesn't know how to practice it. that was the u.s. congress. liz: why isn't president obama being criticized for breaking his no taxes in 2008? >> he should be. he has an early lead on anything. he should be leading congress to make policy changes around taxes. it also around entitlement reform. he has to reform government and we need to reform our tax code. i think reforming government is even more important than reforming our tax code right now. we have to get entitlement growth under control and we have to relax regulations rather than impose new ones.
right now we have the overhang of the regulatory burden stifling creativity and our economy. so we have an overregulated the economy that is suffering through a likelihood that tax rates will go up even more. all of that is a bad formula for growth when it comes to what should be happening in our entrepreneurial grounded capital system that should be there creating jobs. liz: you make a good point. americans know that if we want to make entitlement state, if we want the entitlement machine running full bore in washington dc, you either cut entitlements or you raise middle-class taxes. so here's the question. another use of the president has been leading from behind on virtually everything except raising tax rates. but my question is i don't understand the consciousness of the american voter out there. when they vote for people to raise taxes. taxes in my mind, tax hikes are
austerity. i'm not sure why that is a perspective that isn't out there with the american people. what do you make of that? >> i think we have people that are not looking at how the greater economy affects them. free trade is good for america. it's good for working americans. yet we tend to be protectionist protectionists as we talk about our economy now growing rather than expand. don't talk about being competitive with the rest of the world and taxes. our tax rate are approaching the highest tax rates in the world and we have to be competitive with the world. this is about creating opportunities for growth rather than building walls and burdening others and thinking that you're not going to carry the burden. if you build the wall to deny someone to exercise a creative idea that will add jobs and create opportunities, you are
denying an opportunity to grow. right now we are in a position where the united states is struggling to grow because we are overly protecting ourselves from failure. failure is all right in an economy. but we want to see regulatory regimes that invite creativity and solutions of entrepreneurs coming in with new ideas. liz: that is a great point. >> we want to encourage success rather than punish it. right now, son some of these are punishing success. liz: it's like taking away the net and tenants. we he to be able to stomach failure in the economy. sir, always so good to be with you. i appreciate your time. >> thank you, liz. liz: up next, the president's labor with war. telling unions to back off. and enjoy your chicken wings
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liz: wcome back. this is an important story. unions facing a big defeat this week. the national labor relations board communions they cannot protest in front of wal-mart for two months. they are saying that the unions picketed illegally in frontf the big retailer and after wisconsin and michigan becoming right to work states. so is labor losing its punch? dd, what do you think? >> i do think the unions are dying and they are on their way out. indiana, my homes it is a right to work. and it's working. unions are job killers. losing companies left and i right to other companies and we just need to realize the unions are dead and they need to realize that read what they are is political pacs.
liz: adam, what do you think? >> there's no question that humans are dying. the question is when they're going to die and how data will look. this is a procedural loss for the unions and they will never give up trying to organize wal-mart. it's the biggest, cushy as target there is for a labor organizer. this is a setback for them and nothing more. liz: to her point, essentially what she's saying is that unions need to be more honest. this labor union that has been picketing, their pension is way under water. they need wal-mart workers to keep their pension, which is really -- it's been catastrophic they need wal-mart workers to keep their pensions afloat. what do you make of that? thirty-first of all, i agree with you. but if we are going to talk about honesty, look at the history of unions, good and bad. they were very worthwhile and 30s and 40s when the
pendulum swung to industrial corporations. union membership has been declining since that time. it's at its lowest since the '30s. the flipside of the coin is look at the industry to unions have had a heavy stronghold that have folded. textile manufacturing, autos, it just goes on and on. airlines. if you look at someone saying i should join a union, unfortunately, it's not the '30s and 40s anymore. joining a union is almost a death notice the. liz: go ahead, adam. >> you are implying that they want to sign-up wal-mart workers in order to pad the pension rolls for other workers.
>> i'm not sure that's fair. they want to sign-up wal-mart workers to help wal-mart workers get pension. i understand your point. i don't think it's fair for them to say that that's the only reason they are trying to do what they're doing. liz: the u.n. is trying to unionize wal-mart, they have their own profit sharing with their own 401k plans. to your point, i hear what gary is saying, you want to hear about protecting the workforce or you want a labor movement that's rational. we have a rational labor movement in this company raiment. >> this is a political pack. they are going away and i will tell you why. it is fair. as americans come you can work wherever you want to. if you don't like wal-mart, go work at target. go work at bed bath and beyond. one of these workers feel that
they are owed anything. >> give me the example of the interest group in america that doesn't raise money to dissipate in the political process and why that constitutes this. >> let them do that. be a political pack, don't be a union if it were saving your jobs. be honest about it, say they were taking their money. >> which one is the pack? >> whatever you want to call it. [talking over each other] [talking over each other] look, it is outdated. they spend a and that is why there is a right to work. that is why all these states have right to work. [talking over each other] [talking over each other] >> they are job killers and business killers for our country. liz: adam, what she is saying is there have essentially been reprehensible behavior on the part of union leaders. you're saying that you want a good union system in place to protect the workers.
dd is saying that they are not effective at doing that. >> that's right. i don't think name calling or pointing out reprehensible behavior of leadership of any organization necessarily condemns the organization or the idea that they are trying to pursue. if we wanted to outlaw or get rid of every group that has reprehensible leadership, we could go into corporate america, we could go to government. we did have a long list. liz: i hear what you're saying. the wrapping this up,i'm going to tell you what is going on. some don't have four o. one kays, but the leaders do. they don't have profit sharin but the leers do. they spent money on political contributions were their workers are not getting the protection that the union could be getting because they are picking the wrong fight. what do you make of that?
what you make of what is happening? >> unions bring benefits. higher wages and benefits that you talked about to their workers. but the problem is that humans are like any monopoly as opposed to dd's point, where she called him a political action group, which is also true. the only problem with that is the benefits to the monopoly go to fewer workers. there will be fewer wal-marts and workers they are unionized. higher wages for you are. people would rather have jobs out there and less benefits. liz: to your point, the food workers union came out of the grocery store and supermarket industry. what is going on without industry >> it is an industry that has been consolidating, shifting, i
was a member of that union and i got terrific wages. but it is -- you know, the profit margins are so narrow and then. it's a struggle for any worker, union or not, to survive. liz: all right, you will be back later in the show guys. ♪ making the big romantic gesture. that's powerful. verizon. get a droid razr m by motorola in pink for $49.99.
liz: we are out of money and we are getting taxed. these issues are both connected. "the new york times" and wall street journal broke it out today, saying that they got hacked by the chinese. adding to a long list of u.s. companies reporting similar cyberattacks in recent years. the u.s. government is stepping in to investigate.
but stephen want from "the wall street journal" says are dead is behind all of this and it's making us weak. china is taking advantage of that. okay, make this connection. >> as you know, china other than the u.s. federal reserve is more in debt than any other institution in the world. i am not making the case that it's only the fact that we owe the chinese so much money that these kinds of things happen. here is the case i'm making. if you look at the behavior of this administration and you could maybe even make the case for the bush administration as well. there is no question that we have backed off and enforcing a lot of the types of activities and behavior that we would expect. for example, we have.in terms of discipline in china on helping north korea get a bomb. we have backed up disappointing china in terms of stealing. the we know that they are
stealing our international property. it's applied to mitt romney romney brought up during the campaign. by the way, you used the right point. i don't expect the u.s. government to do much about it is the one who is saying what you are saying. that our debt is making us weak and it's affecting our position in the world. >> they are very secretive when it comes to dealing with china and they don't want to upset the chinese leaders. the point i'm making is that i think there is a connection between their inability to stand tough on china and this debt. they don't want the chinese to sell half a trillion dollars of debt. that would cause a spike and wreak havoc on our nation's finances are a good mention mitt romney because during the campaign he did bring this up, as you recall. but there wasn't much action. since the election has been
over, congress hasn't really done a lot on this. liz: it's pretty striking an astonishing that china has been relentlessly attacking the internet and cyberattacks. in our computers in the united states. so another we have alarms about this, i know admiral mike mullen has been talking about this. but to my mind, and china, lately, they are potentially dialing back your purchases of u.s. bonds. this is important. china needs to keep its own currency came. it needs to keep its own currency appreciation low. you know, they have this and that is important for china. i don't think our officials really appreciate how important it is for china to actually buying u.s. debt. >> in some ways, that's a good thing that they are kind of changed to us. by the way, the fact that they owe us a trillion dollars, it is
true that they own us. for some extent we own them as well. if our economy tanks in the interest rates rise, then they lose money as well. there is this kind of relationship because of this trillion dollars that we owe them. or that they'll us. but the point i'm making is why are we not been a tough? these are criminal behaviors. >> the thing that is really troubling is that hina is hacking into our big newspapers. because they want information about dissidents. political dissidents in cina. we are the land of freedom and liberty and democracy. >> let me add another thing. we are a nation that believes in intellectual property. this is what is being stolen by the chinese. you go to china today and everybody is walking around with these ripoff technologies, the iphone or whatever, our music,
entertainment, it is essentially all being stolen by china. i believe in free trade. i believe in this, but i don't believe that countries should be able to steal from us. liz: stephen moore, thank you so much, sir. next up, two teams playing in the super bowl on sunday. but what about the other 30 teams? the democrats in washington have their way. they will all be working to fight climate change. don't go away. the boys use capital one venture miles for their annual football trip. that's double miles you can actually use. tragically, their ddy got sacked by blackouts. but it's our tradition! that's roughing the card holder. but with the capital one venture card
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liz: welcome back, the government throwing a hail mary pass or a conventional democrats and the nfl and nba and the nhl and major league baseball as well as hundreds of other organizations have advice on fighting climate change. our very own melissa francis does asking the sports guys about that is just nuts. >> it does seem a little crazy. they have wal-mart, they have goldman sachs they have food companies, they have everyone pitching i you can imagine when you get a call from washington and nursing that we want to be on the committee to talk about climate change or whatever and they are
saying, okay. you can't really say no. but it really reminds me of every other committee they put together in washington. these guys may come up with good suggestions and they go absolutely nowhere. liz: i believe it was henry waxman if we want to break through the barricade. they say they want to jumpstart the action. the once again, you can make all the suggestions in the world. but what is the point? climate change, i don't know that we want to have them act on. they have brought together all these ceos, and they did come up with some good ideas one was you know, none of them cost money.
businesses in the area, colleges in the area, why don't they talk about training programs they could put in a place to train students. they can fill the jobs that are available. but it's like they sit down and write out proposals and the president dismisses them and nothing happened. and you think it will probably have the same result, depending on whether you think climate change is real. then jay carney said it's not a singular priority, and now we have henry waxman saying, what we want to do outreach and public outrage. so do you think they can win on this by so-called educating the people? >> it is just a lot of talk with no action behind it. if you want to know how they feel about the struggle between
environmentalists and people who need energy for the economy, let's watch what happens. rather than looking at committees, look at action and see what happens and i would say focus on keystone. >> more gatorade or whatever, i don't know. liz: it is always a riot, thank you. when this funniest and smartest. super bowl tickets are expensive, but staying home will be as well. a more than 10% since last year, we have the best i in the country to talk about this. john lonski is ceo and i thought
it was an oil change. we are a restaurant and bar. liz: not to be facetious, but why is there a run on chicken wings? >> it's incredible. when the server first chicken wing in 1976, people were cutting the wings off the chicken and throw them away. we had to give the wings away because no one would buy them. we finally convinced people to try them and today, it's the high-scoring item on the menu in 2012. liz: they have become as precious as gold. i'm kidding, but what happened? >> i think it was 26,000 pounds or something like that. i think you was because they were expecting a shortage and they figured they could help the wings.
>> up an incredible story. >> i will tell you something. this is a city that has basically made a lot of money off of chicken wings. are you concerned about the run-on that's? >> obviously, whenever there is a high demand on things from you have to be concerned. the friendly we are delighted. we would be crazy if we want to live with that. but it does put some pressure on now. so that is not going to be a problem this sunday. from a consumer standpoint, it might be many prices have gone up about two or 3% across the system. there are a couple of things
that happen. they grow chickens and about 40 or 50 days. >> we love our supplier partners, but we are looking at the demand and supply and then we had the drought and corn prices go up. we refer to chickens as corn with wings. it is directly related to the price of corn. should the super bowl fans be worried that they cannot have their chicken wings? they should not be concerned. it's a tremendous value because the restaurant have an reflectiveness i would guess that the chicken wings with the between two and 5% higher in the restaurant and remember, the restaurant paid 50% more to buy them than they did last time. >> i love the reveal that history here.
so we had the chicken wing and then we had the chicken tenders and all of a sudden, the chicken wings are out there and nec chicken tenders. >> people started this in the late 60s. they were good and there they were cheap. what happened is that the wings started driving the bird. in other words, there were more wing commander than any other part of the bird. all of a sudden the poultry supplies were faced with a dilemma, too much rest meet come in too much dark meat. the industry came up with something called boneless chicken wings. >> thing that we have to do check the other meat as well, right? >> exactly, that's how they were created. they were created in order to match the demand. by the way, 81% of the growth,
consumers love them. >> you taught me some interesting things. it's so good to be with you, sir. happy anniversary to you and your wife. it this weekend, is that right we might. >> okay, many looking to take down the ridge and vilify wall street. next, the billionaire at who is saying enough is enough. this rich guy who says he is going to be the next mayor of new york city and he is here with me, that is next, don't go away.
to places like florida. my next guest is running for new york city mayor as a republican. would he make of this? >> well, it is unfortunate a lot about doctors moving to texas. florida has no personal income taxes. it's a natural trend. when people are making over $200,000 per year, they are smart. smart people said well, maybe i will move. it's not like they are stuck and they don't have the ability to get another job. >> is interesting. the upper bracket can rearrange
this. that's what you're saying. it's companies like goldman sachs, the big players on wall street, texas and florida and where does this trend take us, with states like new york and california. >> it leaves them in trouble. because now we have governor cuomo that trying to put a lid on that. it's a little bit helpful. but if we have a new series you have to learn. if you have a billion-dollar problem, will raise taxes, wu we will raise fees, parking tickets, you know, people reach a point where enough is enough
unless we get the right management in our city and state governments, and that trend will increase and it's going to hurt and eventually it will show. >> the wakeup call has yet to be answered, right? >> not really. it is slow. i think in new york state we have had 3.5 million people leave in the last 10 years. only 2.1 million people came in. so you have a net outflow. a lot of it is in new york city. the republican party says why can't we get this on the east side of manhattan. welcome i got the apartment, but nobody was there. >> that's interesting.
>> but they're not here, or elsewhere? >> so the thing is, the california weather and my style, maybe it's not worth the higher price tag. maybe this is the thing that the upper bracket is doing. is that what is going on? >> either that or they would like to enjoy less than 186 days per year. liz: you have to say, welcome to texas. maybe the weather isn't great. maybe the southern part of texas is like living on the sun. and you know, what's interesting is rick perry has been tweeting us that hey, come on over, we'd love to have you. >> when chris christie was
governor, there was a nice little cocktail party for him and a bunch of new yorkers went to him. >> what do you make of this? what about better infrastructure in the wake of hurricane sandy. it has become such micromanaging that they have lost the big picture? >> know, we've had too many professional politicians. what i want to do is give a business people. people with a vision. >> they don't want to go through that whole rigmarole.
liz: okay, john, thank you so much it's so good to be with you. are you running for mayor? okay, as a republican, thank you so much, sir. next up, who is getting crunched? crunched? that's up next, don'to you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above,
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states. we have gary b. smith back with us. >> well, apple is absolutely not out. they did have a does the waiting financial quarter and that they had no profit growth and that's very does irving to those who expect them to go to the moon every single quarter. one of the reason for the past samsung sung in the most recent time is that apple hadn't felt had no phones in the market and samsung has not had that. to its own. but this is a dog toy. >> and makes an interesting point. it is a big dogfight between samsung and apple was treated like it fell back to work in a big way. but they could still be the number one seller of these data rate would he make of that? >> i fully agree. by the way, the book is excellent and there is an expert
on apple. apart from that, you have to can either that right now animate state good point. what have we seen from apple? they keep giving us product that we didn't know that we needed. it was the ipod, it was the iphone, i thought the ipad, for me was done. now i can't live without it. it tiesn with the whole system may have with itunes. it's almost like you're waiting for them to tell me what product to use. liz: you know, what he is saying essentially is that they're helping you with what you didn't know you were missing. adam can correct me if i'm wrong. he has been quoted as saying that he is watching television these days and he feels like he's going backwards in time. he's watching it from 30 years ago because when you are scrolling through the cable tv menu, i see the most boring
things. i don't want to see all these dumb tv shows that i have to pay for. what do you think? >> i think it's great. i'm a huge apple fan. i think sam sung sucks. what is great as you go to the genius bar and the stores in the service and it's so wonderful. i just think that apple is fantastic. liz: i'm wondering about this because what is going on in china is these guys out there in china are saying the men in china are saying that we won't mourn apple products. we want cheaper apple
iphone's. dc is going for $99? what does that mean for apple in a. in the united states you can get an iphone for free with the contract. so i do believe that apple is way more interested in lower price points than it ever was before. it hurts profit margins. but it's really good for growth. it really shows that they want market share and customers and they are getting them. the company is evolving. liz: to adams point, adam has been working very hard to get a hookup in china mobile. that means way more people buying apple products. you know, when you think it
through, the market share they could get is astonishing around the world. >> exactly. you have to remember apple does the little things very well. when you walk through virtually any mall, the apple store is always crowded. sometimes there is mourn genius workers there than there are customers. it gives the appearance of vibrant and other things going on. >> i love the apple store. it makes make you think wow, i want that. your phone is attached to heaven you have to have a good one. i have one important point.
i do not think that samsung's product set. they are actually shockingly good they stock their stores and people won't show up. [talking over each other] [talking over each other] liz: okay, there you go. there is the female speaking now speaking up here. thank you so much, gang. next up, remembering a guy that always spoke his mind and did not mind criticizing both sides not mind criticizing both sides of the poli at a dry cleaner, not mind criticizing both sides of the poli we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.
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